After activating the 2020 budget implementation, the Federal Government proposed to spend ₦11.86 trillion in 2021.
Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, made this revelation whereas presenting the Medium Term Expenditure Framework (MTEF) 2021-2023 in Abuja on Friday.
However this adventurous spending projection, Zainab Ahmed additionally said that the nation’s fiscal futunes will endure a deficit of ₦5.16 trillion due to the federal government’s projected ability to generate only ₦6.98 trillion revenue all in 2021.
Apparently, while the Naira devalued to ₦380/$, the minister of finance pegged exchange rate within the 2021 fiscal year at ₦360/$.
The 2021-2023 MTEF/FSP is the pre budget statement that gives the framework for the development of the 2021 Budget.
Zainab Ahmed said “it is being framed against the backdrop of a challenging global macroeconomic environment as well as domestic factors.”
The government she said will “aim to keep the deficit within the 3% ceiling over the medium term, and are therefore working on identifying new revenue sources and/or cost reductions.”
The draft 2021 – 2023 MTEF/FSP she noted “has been prepared against the backdrop of heightened global economic uncertainty.”
According to her, “the medium-term outlook for Nigeria suggests that fiscal risks are somewhat elevated, largely due to Covid-19 related disruptions which have exacerbated structural weaknesses in the economy.”
